fy2015 fourth-quarter financial resultsapm.listedcompany.com/misc/results_briefing_4q2015.pdf ·...
TRANSCRIPT
APM Automotive Holdings Berhad
FY2015 Fourth-quarter financial results
Cautionary Statement with Respect to Forward-Looking Statements
Information contained in this presentation is intended solely for your reference. Such information is subject to change without notice, its accuracy is not guaranteed and it may not contain all material information concerning the Company. We do not make representation regarding, and assumes no responsibility or liability for, the accuracy or completeness of, or any errors or omissions in, any information contained herein.
Statements or comments made during this presentation that are not historical facts are forward-looking statements that reflect our plans and expectations. These forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause our actual results, performance, or achievements to differ materially from that anticipated in these statements.
These factors include (i) changes in economic conditions, currency exchange rates, the laws, regulations, government policies, or political instability in the market place, (ii) circumstances relating to our ability to introduce, in a timely manner, and achieve market acceptance of new products, and (iii) shortage of fuel or interruptions in transportation systems, labor strikes, work stoppages, or other interruptions to or difficulties in the employment of labor in the major markets where we purchase materials, components, and supplies for the production of our products or where our products are produced, distributed, or sold.
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2014 20152014 20152014 20152014 20152014 2015
-46.3%
18.1
-5.1%
Key performance indicators
Revenue Operating
Profit Earnings Per Share
Net Asset Value Per
Share
287.8
273.0
33.7
5.84
RM (mil) RM RM (sen)
12.60
7.52
6.05
3
-40.4% +3.6%
Reduced demand for OEM parts
Net Profit
27.8
18.0
-35.2%
RM (mil) RM (mil)
4Q2014
4Q2015
Business Update
4Q15 Operation & Financial Review
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4Q15 financial review
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Lower profit (YoY) as a result of production cutbacks and one-off inventory adjustments
RM’000 4Q15 3Q15 4Q14 QoQ YoY
Net revenues 272,981 255,840 287,843 6.7% -5.2%
Profit before tax 17,982 16,659 35,648 7.9% -49.6%
Net Income 17,871 11,428 27,754 56.4% -35.6%
Profits Attr. to SH 14,712 9,652 24,690 52.4% -40.4%
EPS (Sen) 7.52 4.93 12.62 52.5% -40.4%
Net assets per share 6.05 5.98 5.84 1.2% 3.6%
Return on equity (annualised) 4.97% 3.33% 8.60%
Net Dividend per share (sen)
12* - 12
Net Profit Margin 6.5% 4.5% 9.60%
Segmental sales
Decreased revenue from local operations was mitigated by higher overseas sales
RM’000 Q4 2015 % Q4 2014 %
OE 194,167 71.1% 212,344 73.8%
RE 28,813 10.6% 35,791 12.4%
Export 22,266 8.2% 19,512 6.8%
Others 2,761 1.0% 336 0.1%
Foreign Operations 24,974 9.1% 19,860 6.9%
TOTAL REVENUE 272,981 100% 287,843 100%
Segmental performance
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Reduced dependence on Malaysia as Australia, Vietnam and USA continued to register strong growth
Business Update
4Q15 Operation & Financial Review
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Production TIV Contracting
2008 2009 2010 2011 2012 2013
Increased revenue due to dependency on OEM parts
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APM Revenue (RM’mil) Production TIV
2014
Source: MAA (as for Production TIV)
2015
231 239 250
223
191 213
246 269
285
314 291 288
301 277
297 306 293 297
285 301
285
338 329 306 308
340
292 288
318 306
256 273
0
50
100
150
200
250
300
350
40,000
80,000
120,000
160,000
200,000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
National & Non-national Market Share
Non- National brands regain market share
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19% 18% 19% 26%
32% 35% 35% 35% 39% 37% 40% 41% 44% 47% 53% 51% 53%
81% 82% 81% 74%
68% 65% 65% 65% 61% 63% 60% 59% 55% 53% 47% 49% 47%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 3Q'15 4Q'15
Non-National National
4Q15 TIV
TIV increased due to promotional sales
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Q-o-Q %
Toyota 35.89%
Nissan 8.82%
Honda 24.88%
Mitsubishi 17.83%
Isuzu 22.56%
Mazda 3.55%
Q-o-Q %
Perodua 12.68%
Proton -18.48%
Q-o-Q %
Ford 4.61%
VW -44.09%
BMW 6.80%
Peugeot -2.09%
11.1%
163,204
181,247
3Q15 4Q15
FY15 business update
4Q15 TIV 181.2K; +11.1% QoQ. 12M15 TIV 666.7K; +0.0% TIV did not directly translate to revenue as our key customers reduced
production during the year. Counter measures include: Expansion of new business - new products / segment
Intensify the development of parts for replacement markets
Consolidate certain operations to reduce overhead costs
Expansion into new products via JV or acquisition of business
Study of other sources of supply to reduce material costs
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Strategic Purpose
Environment
Market Assessment
Target Opportunities
Growth Opportunities
Risk Management
Implementation Plan
Targeted Research
Our Vision Our Strategy
Global Market Review
Asia Pacific Market Review
Malaysia Market Review
Economy & Environment
Tier 1 Competition
Local Supplier Lessons Learned
M&A Opportunities Tier 1 Supplier Tier 2 Supplier
Due Diligence IP Production Legal & HR
Partnerships Detailed Planning
JV Local
Resources Quotation &
Proposals Supplier/Tool
Resource
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M&A Opportunities
Completed M&A Deals
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Joint venture with Bent Holding B.V.
• APM Auto Components Europe B.V. and Bent Holding B.V respectively have subscribed for 800,000 and 200,000 ordinary shares of €1.00 each in APM-TS B.V. (“ATS”), a newly incorporated company in Netherlands.
• ATS had acquired certain assets and business of Bent Holding B.V for a cash consideration of €450,869.
• To jointly develop and grow the business of development of springs, absorbers and coil-overs for the automotive market in Europe.
Joint venture between Auto Parts Holdings Sdn Bhd (“APH”) and Tinnos Asia Sdn Bhd (“Tinnos”)
• APH and Tinnos respectively have subscribed for 1,200,000 and 800,000 ordinary shares of RM1.00 each in in APM Tinnos Sdn Bhd (JV company), formerly known as Apinnos Sdn Bhd.
• To carry on the business of developing, manufacturing and supplying automotive In-vehicle Infotainment systems and other related electronic products, which are of or derived from original designs of Tinnos.
• This JV arrangement is in line with the expansion plan of the APM Group into new products.
Moving Forward
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Geographical Diversification
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Port Klang
Tanjong Malim
Bkt Beruntung
Suspension & Heat Exchange
Electrical & Heat Exchange
Interior & Plastics
Binh Duong
Suspension & Seats
Cikampek Lippo Cikarang
Karawang
Coil Spring
Interior & Plastics
Seats
North Coburg
Seats
Rayong
Plastics & Components
Bago
Interior & Plastics
Propose plant set up
Plant
Kulim
Interior & Plastics (under construction)
Leaf Spring (under construction)
Netherlands
Springs, absorbers and coil-overs
Shock Absorber (under construction)
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Sales Guidance through Balance & Diversity
RM2b sales target (RM1b existing OE & RM1b exports, overseas & others)
OE, 50%
RE, 13%
Export, 10%
Others, 1%
Additional Modules, 4%
Outside Malaysia,
22%
2020F
Turnover: RM 2.0b Turnover: RM 1.2b
OE, 78%
RE, 9%
Export, 8%
Others, 0%
Outside Malaysia,
5%
2014A
Sub-Assembly &
Manufacturing
Distribution (Vehicles &
Parts)
Retailer (Vehicles, F&!,
Parts & Service)
Customer Automotive Value Chain
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Integral Player within Local Automotive Eco-systems
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Auto Cycle Investing
Thank You